Apologies for the late post, but here comes the 15th edition of Money Buzz! It’s coming in hot!
#1: Dollar Strength
When the Federal Reserve decides to increase interest rates, they are driving demand for the US Dollar (USD). Simply put, this is because investors will want to purchase US Government bonds. As seen from the picture below, the yield of 10-Year Notes continues to increase over the past three months. Through all of this, it appreciates the dollar and makes it a stronger currency versus other currencies (Example: Euro).
So Jakob… what does any of this mean to me? Well, I am glad you asked! With the dollar appreciated, it is making domestic goods/services more expensive while making foreign goods/services less expensive. Thus, decreasing US exports and increasing imports. However, the dollar’s strength may fall in the near to long-term future. With inflation where it currently is (Yes, another newsletter talking about inflation! Oh my!), the US economy may soon be at a standstill. In the mean time, we must await word from the Federal Reserve on how to hope to curb inflation.
#2: EV Safety
I recently came across an article by Cade Metz, where he says that Autopilot systems (like Tesla’s) may not be as safe as they claim. Without going too much into it, the above quote seems to summarize Metz’s point of view pretty well. This is not just an issue for Tesla, this is also an issue experienced by brands like GM and Ford. AutoPilot is marketed as a safer way to drive, but there is actually no way to verify or prove that claim. Especially if the car is fully driving by itself, it may encourage the driver to be less aware of their surroundings (Example: Scrolling social media while the car is “fully” driving). Another weird paradox that I thought was really interesting to think about! Will these AutoPilot systems ever be fully accepted without complete evidence of their effectiveness? Who knows.
Lifestyle Column
Apple’s New MacBook Air
Highlights
New M2 Chip
New design with “Midnight” color
13.6 unch Liquid Retina Display
MagSafe charging
By merely reading these new highlights for Apple’s new MacBook Air, it has ME ON THE EDGE OF MY SEAT. This is one of those Apple releases where they absolutely nail it. I am a self-proclaimed Apple fanboy, but I am willing to acknowledge when they make mistakes. However, it is encouraging to see Apple create a product where they listen to what ~customers~ want. From a business perspective, I cannot help but think that this release will completely cannibalize the MacBook Pro’s sales. The new MacBook Air is a powerful machine at a “reasonable price” (when it comes to Apple standards). For a quick reference, the “MacBook Air with M2 starts at $1,199 (US) and $1,099 (US) for education”. As a result of this, who would want to purchase the MacBook Pro? The MacBook Air seems like the perfect little package to me.